SPECIAL!

SUMMER I 2013

Smart
Estonia

Ericsson
Welcomes
Networked
Society

The Future
Of Healthcare
Is Digital

Taavet H...
Estonia –
A Model
of the
Future State

The digitized world we live in today is so
radically different from everything befo...
I CONTENT

SUMMER_2013
	 6 		Where to go this season?
		 Life in Estonia recommends
	 8 	 News

33 	 Estonia Waiting
for N...
44 	 Erkki Raasuke: Modern
Banks were Behind
the Simplicity of Doing
E-Business in Estonia
Erkki Raasuke has years of expe...
I WHERE TO GO THIS SEASON

Estonia Theatre
and Concert House
100
Palmse Manor Music
6th – 7th of July 2013 Palmse Manor po...
presents:

NARVA CONCERTS
Narva Town Hall Square

August 16 20.00

ORCHESTRA
ENSEMBLE
KANAZAWA
(Japan)

August 17 20.00

E...
I NEWS
Estonian VKG picks diesel plant builder
The Estonian privately owned oil shale chemicals firm
Viru Keemia Grupp (VK...
NEWS I

Estonian capital among the world’s Top7 Intelligent Communities
Intelligent Community Forum names
the world’s Top7...
I LAND AND PEOPLE
More than half of the land of Estonia is covered by
forest. Accordingly Estonians are somewhat tradition...
“X-Road” via which all systems communicate. XRoad is considered quite an innovation: such distant
countries as Palestine a...
I LAND AND PEOPLE

In Germany I have never been interested in finding out about the state budget division. The figures are...
to develop things. In Holland,
people in the middle class don’t
make as much as money as they
did seven or eight years ago...
I LAND AND PEOPLE

A London-based classical
music review website has,
for the second year running,
named Arvo Pärt the yea...
Not many people who offer standing ovations in concert halls around
the world after listening to Pärt’s music are aware of...
I LAND AND PEOPLE
Alar Kivilo

Estonians are also stars in pop culture. Director of Photography
Alar Kivilo (60) is the on...
Sport: An Estonian - Big in Japan
The sumo wrestler Baruto, born Kaido Höövelson, is an Estonian
sportsman with probably t...
I LAND AND PEOPLE

Business: Financier of Hotmail and Skype

Photo: Michael Soo

Born in Phoenix, Arizona, and the son of ...
Other famous business people
An Estonian industrialist living in Australia – Sir Arvi Parbo – used to
run a billion-dollar...
I LAND AND PEOPLE

Text: Mihkel Kärmas
Photos: Bulls Press

Before Skype became a global hit, our most famous
export was C...
“I never took on this job in order to become famous. I am just stubborn
and want to give my best in whatever I do. Then it...
I LAND AND PEOPLE

22

LIFE IN ESTONIA I 2013 SUMMER
The next Karmen picks up the crystal shoe
Experts claim that Carmen Kass was the one who opened the door for
other Estonia...
I LAND AND PEOPLE

24

LIFE IN ESTONIA I 2013 SUMMER
Top models are not
overpaid clothes hangers
Tiiu Kuik also started out in difficult social circumstances. “My mum
has some...
I STATE AND SOCIETY

Estonia as an

Engineer’s
Dream
Text: Taavi Kotka
/ Deputy Secretary General - ICT, Ministry of Econo...
Estonia is known around the world as an IT
country. Public e-services, e-voting, digital signatures in everyday use and a ...
I STATE AND SOCIETY

The Story of
		
e-Health Estonia

Text: Ain Aaviksoo / MD MPH, HealthIN

A recent study by OECD/EU re...
What does this mean?
How did it happen?
First, Estonia has strong traditions of healthcare informatics and
computer engine...
I STATE AND SOCIETY
Madis Tiik, MD
•	
	
•	
	
•	
•	
	
•	

Tartu University, Medical Doctor 1996
Nordic School of Public Hea...
Countries which achieve success
in the field of e–health have
clear-cut management structures.
“I can access my health dat...
I STATE AND SOCIETY
E-Prescription
In search for efficiency, the Estonian Health Insurance Fund and
the Ministry of Social...
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
Life in Estonia (Summer 2013 issue)
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Life in Estonia (Summer 2013 issue)

  1. 1. SPECIAL! SUMMER I 2013 Smart Estonia Ericsson Welcomes Networked Society The Future Of Healthcare Is Digital Taavet Hinrikus: Famous Estonians Around The World Navitrolla – TransferWise Revolutionizes Money Transfers  The Man Who Paints Freedom land & people I state & society I economy & business I science & innovation I culture & entertainment I tourism
  2. 2. Estonia – A Model of the Future State The digitized world we live in today is so radically different from everything before it that we can talk about a revolution, similar to the one brought about by the invention of the steam engine in the 18th century and the beginning of the industrial era, or the Fordian revolution in the early 20th century that made motor cars available to the broad masses of people. Like then, we now need a totally new understanding of what a contemporary society is and how it functions. It is no accident that Estonia has been rated No 1 in the world, ahead of the USA and Germany, in Internet freedom by Freedom House for three years in a row. As a member of the Internet Freedom Coalition, we are committed to protecting Internet freedom in the world. In the era of horse-drawn carriages, there was no need for highway overpasses. The mass production of cars brought about the need for a totally different network of roads and city infrastructures. Similarly, we now need a digital infrastructure to support a society where practically everyone owns a computer or a mobile device through which they are connected to everyone else in the world, and where many of the basic functions of society have gone online. This is what our idea of e-Governance is about. We create tools that contribute to freedom and prosperity and increase the openness and transparency of decision making. And yet transparency, a cherished liberal value that helps fight corruption, in some cases contradicts another important democratic value: privacy. Seeking the right balance between these competing values is a challenge we will have to deal with. Estonia has been a builder of those new roads. But this new infrastructure means that we also need new “traffic rules”: laws and regulations that make navigating the new roads safe and smooth. Cover Taavet Hinrikus Photo by: Oscar Barnack Executive publisher Positive Projects Pärnu mnt 69, 10134 Tallinn, Estonia think@positive.ee Editor Reet Grosberg reet.grosberg@ambassador.ee Translation Ingrid Hübscher Ambassador Translation Agency Language editor Richard Adang Design & Layout Positive Design Partner In the new digital world, any country that wishes to be considered modern and successful must understand that it has to exist online as well as offline. This means more than just applying the available technology to take existing paper services online. Once public services are online, democracy needs to get online as well. Estonia has done well in these areas. Through our digital innovations, we have become a model of the future state. Excellent examples of e-Governance have been available here for more than a decade. And now we see civil society and popular movements using the Internet as their platform; we see online crowdsourcing used as a means of policy-making and civic engagement. Ten years of development projects and training all over the world have spread the word about our e-Governance as a tool for efficiency, but we need to aim higher. We need to use our technological advancement to promote the values we believe in: freedom of speech, the rule of law, and the protection of fundamental human rights. The e-society is not just a matter of technology. It is a way of life, a vision. Stewart Brand, an early architect of the idea of information freedom, has said: You can’t change human nature, but you can change tools and techniques. The Estonian e-Governance system, our technology and our vision have had a wide international reach. We have an IT expert consulting the British government. The Palestinian authority and Moldova are going to use Estonian online authentication services. Finland is contemplating creating a digital infrastructure similar to the Estonian X-Road. But we must be careful not to get stuck merely spreading the implementation of the technology we have. We need to think further about the digital society we now live in, about how it affects our democracy, our people, our education, our laws and our culture. We need experts in many different fields who understand the technology that shapes our world. And we need research on outcomes, the effects on society, e-Governance, the e-state and the whole digital way of life. I hope that Estonia, having been an early adaptor of new technology, will also become a hub where modern society is being thought of in depth. Just as there was a vision at the beginning of the ICT revolution, we still need a vision. Or, to paraphrase the late Steve Jobs: we still need to stay hungry and foolish. This is only the beginning. Toomas Hendrik Ilves President of Estonia SUMMER 2013 I LIFE IN ESTONIA 3
  3. 3. I CONTENT SUMMER_2013 6 Where to go this season? Life in Estonia recommends 8 News 33 Estonia Waiting for New Electric Cars from Producers 10 Voting in the Forest: New The small “testing polygon” of Estonia has recently become a fertile e-Breath for ground for electric cars: the country is the first in the world to have a e-Democracy national network of rapid charging stations, and the state supports the Dr. Carri Ginter, an associate professor of EU law at the University of Tartu Faculty of Law, reflects on some of the key factors contributing to Estonia’s success in establishing e-services. purchase of electric cars with 18,000 Euro per car. Jarmo Tuisk, Head of the Estonian Electric Mobility Programme (ELMO) at Kredex, talks about how the usage of electric cars has taken off. 37 UniSCADA - The Next Generation Smart Home 14 A Brief Look at Some Famous Solution is here Estonians The quote by Ernest Hemingway from To Have and Have Not “In every port in the world, at least two Estonians can be found” is not just a literary metaphor. Many Estonians have made it to the top in diverse fields and in faraway countries. Life in Estonia has put together its own selection. 20 The Three Best-Known Faces of Estonia Before Skype became a global hit, our most famous export was Carmen Kass. Today several Estonian beauties have followed in her footsteps and have joined the cream of the crop in the fashion world. Get acquainted with three of them: Carmen Kass, Karmen Pedaru and Tiiu Kuik. 26 Estonia as an Engineer’s Dream Uniflex Systems, the Estonian technology company behind UniSCADA™, has created a solution which really stands out from the competition. Cost vs. Performance has always been a major issue in the field of home and and building automation. The new technology that Uniflex Systems has created, claims to address them all successfully. 38 Erik Kruse: Welcome to the New, Networked Society! Even though you might feel that you are already connected through every possible device and that there is no room to be even more networked, it is still just the very beginning, says Erik Kruse, Ericsson’s strategic Marketing Manager and Networked Society Evangelist. Life in Estonia turned to Erik Kruse to ask for more information. Kristjan Kuhi, a senior engineer at the Consulting and System Integration Department of Ericsson Estonia introduces the new projects of Ericsson Estonia. Estonia is known around the world as an IT country. Public e-services, e-voting, digital signatures in everyday use and a transparent tax system are only a few of the examples of what makes the innovative small state stand out in the eyes of others. Taavi Kotka, Deputy Secretary General - ICT, Ministry of Economic Affairs and Communications, speaks about the choices Estonia faced when building up it IT solutions. 28 The Story of e-Health Estonia 42 Lightmiles – Internet Based on Light is No Longer Light Years Away 30 E-Health Applications Like Something out of Science Estonian and Japanese IT specialists have joined forces in the company Fiction Lightmiles, which aims to bring speedy Internet connection to the world On the basis of data from 2012, Estonia is the leader in Europe in e-health applications. Last year, doctor and IT expert Madis Tiik, a key figure in the establishment of Estonia’s patient data system, was recruited to promote e-healthcare in Finland and evaluate the e-healthcare services of the Finnish Innovation Fund Sitra. 4 LIFE IN ESTONIA I 2013 SUMMER via light. Ahto Pärl, Executive Director of Lightmiles, says that this technology has great potential: data communication takes place via LED lamps. The project was born out of Fumiyasu Sunagawa’s weird and wonderful career adventures and his discovery of Estonia.
  4. 4. 44 Erkki Raasuke: Modern Banks were Behind the Simplicity of Doing E-Business in Estonia Erkki Raasuke has years of experience in bank management and, for the last year and a half, he has been working as Adviser to the Minister of Economic Affairs and Communications. He sheds light on the reasons why it is so easy to arrange business and financial affairs in Estonia that everything from starting a business to submitting annual reports can be done without getting out of your armchair. 64 Mektory – A Unique Laboratory Bringing Together Students, Professors and Entrepreneurs Tallinn University of Technology will open the doors of a unique innovation centre which brings together various elements to implement great ideas. Mektory Director, Tea Varrak.introduces the new centre where there is room for various activities, ranging from start-up rooms and design workshops to actual production units. 67 The Road to a Paperless World 46 Transferwise: A Revolution in Worldwide Currency Transfers When the billionaire Richard Branson notices your business and blogs about it, announcing your new service to be a real innovation in banking and finance, then you know you’re onto something. Two months ago it happened to a company created by two Estonian entrepreneurs, Taavet Hinrikus and Kristo Käärmann. TransferWise was named also the best e-solution in Estonia in 2013 and won the best European start-up prize, “Europa”, last winter. 49 The Secrets of the Estonian E-Tax Board – Willingness to Take Risks, Trust and the High Standard of IT Arne Ansper works as the Development Manager of the Information Security Systems Department of Cybernetica AS, which has participated in the development of the Estonian ID-card, X-Road and the Estonian Internet voting system. Read what he regards to be the keywords behind the success of e-Estonia. 69 Estonia in Space – What are the Benefits? At daybreak on 7 May 2013 Estonia entered space. The satellite ESTCube-1, built at the University of Tartu, was launched to orbit at an altitude of 680km, where it will circle the Earth every 1.5 hours at a speed of 27,054 km per hour. This makes Estonia the 41st country in the world to have its own space mission. Madis Võõras from the Estonian Space Office weighs the benefits of this achievement and Mart Noorma, a pioneer of the student satellite project, shares the emotions of the launch. The current central IT system for tax accounting and the Estonian E-Tax Board developed on its basis, which has received international recognition and also some envious looks, was developed four years ago by just twenty IT engineers in an office located on the outskirts of Tallinn city centre. But why does Estonia have such an E-Tax Board when other countries don’t? Heiki Kübbar, Director of Icefire, which created the Estonian E-Tax Board, mentions the three main ingredients: the courage to take risks, the high level of IT in the country and trust. 51 PORTFOLIO Navitrolla 59 Navitrolla – The Man who Paints Freedom Estonians know Navitrolla as the guy who paints funny pictures loved by his countrymen and tourists alike. In each picture the artist paints a grotesque, strange detail or creature which totally captures one’s attention. Once you have viewed the story in the picture, you are ready to take in the peace and tranquillity of the broad nature motif in the background. Yet his landscapes are amazingly broad and light, and they convey a sense of freedom. 72 Kerli: The Bubblegum Goth Who Wanted To Escape and Found Her Way The 26-year-old singer and songwriter Kerli is the only Estonian whose albums have reached the Billboard ratings, who has inspired the style of Lady Gaga and who has written music for the cult film director Tim Burton’s recent blockbusters “Alice in Wonderland” and “Frankenweenie”. 77 Estonia In Brief 78 Practical Information For Visitors SUMMER 2013 I LIFE IN ESTONIA 5
  5. 5. I WHERE TO GO THIS SEASON Estonia Theatre and Concert House 100 Palmse Manor Music 6th – 7th of July 2013 Palmse Manor pond “PALMSE MANOR MUSIC“ – experience the nature, music and the most gorgeous manor complex in Estonia merging into one. Organizers: Foundation of the Museums of Virumaa in cooperation with Eesti Kontsert. Saturday, 6th of July 21.00 Palmse Manor pond Gala concert “Tchaikovsky and Verdi“ Estonian National Symphony Orchestra – conductor ANU TALI Soloists from the Moscow Musical Theatre “Helikon-Opera” KARINA FLORES – soprano ALI MAGOMEDOV – tenor MAKSIM PEREBEINOS – baritone Romantic musical journey through the creation of two great figures of the history of opera. Sunday, 7th of July 21.00 Palmse Manor pond “Three Men Make a Concert“ JAAN PEHK, JAREK KASAR, VAIKO EPLIK Estonian National Youth Symphony Orchestra – conductor JÜRI-RUUT KANGUR Jaan Pehk, Jarek Kasar and Vaiko Eplik – three tenors of a new generation, new sound masters of the 21st century Estonian pop music, who have won the hearts of critics and Estonians with their innovative and mellow rhetoric and musical language. Official supporter Tickets: www.piletimaailm.com; www.piletilevi.ee www.palmse.ee / 6 September at the Estonian National Opera / Stage Director: Arne Mikk Conductors: Vello Pähn and Eri Klas Choreographers: Toomas Edur and Marina Kesler Historic Anniversary Gala and Banquet “Once Upon a Time in a Hundred Years…” Irving Penn. Balenciaga Little Great Coat (Lisa Fonssagrives-Penn). 1950, Paris Moderna Museet, Sweden. © The Irving Penn Foundation Irving Penn. Diverse Worlds 14.06.–06.10.2013 A survey of the still lifes, portraits and fashion photos of Irving Penn (1917–2009), a late 20th-century American photographer. An exhibition organised by: KUMU ART MUSEUM Weizenbergi 34 / Valge 1, Tallinn Tel +372 602 6000, kumu.info@ekm.ee www.kumu.ee 6 LIFE IN ESTONIA I 2013 SUMMER Open: May–Sept Tue 11am–6pm, Wed 11am–8pm, Thu–Sun 11am–6pm Oct–Apr Wed 11am–8pm, Thu–Sun 11am–6pm Vello Pähn Estonian National Opera Soloists, Chorus, Orchestra, Boys’ Choir and the Estonian National Ballet, Estonian National Male Choir and guest performers from the Tallinn City Theatre and Finnish National Opera The historic opening gala of the festival “Estonia Theatre and Concert House 100” will take us a hundred years back in time: the guests will arrive in horse-drawn carriages, and ladies will wear lace gloves and gentlemen top hats. The uniquely beautiful spectacle will take us through the century of beauty and struggle. The programme features excerpts from Estonian as well as world-renowned operas and ballets. The gala in the Theatre Hall is followed by a banquet with many surprises in the Estonia Concert Hall next door. www.opera.ee
  6. 6. presents: NARVA CONCERTS Narva Town Hall Square August 16 20.00 ORCHESTRA ENSEMBLE KANAZAWA (Japan) August 17 20.00 ESTONIAN DREAM BIGBAND concert.ee Risto Joost Butterfly Opera by Tõnu Kõrvits in two acts World premiere on 13 September at the Estonian National Opera PIRITA CONVENT, TALLINN, ESTONIA 9TH – 18TH August 2013 Charles Gounod’s opera “FAUST” Conductors: Vello Pähn and Risto Joost Stage Director: Peeter Jalakas (Von Krahl Theatre) Benjamin Britten’s opera “ALBERT HERRING” Musical “ARABELLA” by Olav Ehala and Leelo Tungal Nikolai Rimsky-Korsakov’s opera “THE TSAR’S BRIDE” “Butterfly” by Tõnu Kõrvits is a dream-like opera, merging life, theatre and fairy-tale. The heroine Erika is a mysterious bird-woman, who is employed by the theatre by chance and dances like a butterfly. She is fickle, sensitive and unpredictable. Her bird nature makes her choose between leaving with them on the brink of winter or staying at the theatre, where her heart and her beloved August are. Kurt Weill’s – Bertolt Brecht’s “SEVEN DEADLY SINS” Ballet “FIGARO”, music by Wolfgang Amadeus Mozart and Gioachino Rossini Pyotr Tchaikovsky’s ballet “THE SLEEPING BEAUTY” WWW.BIRGITTA.EE OFFICIAL SUPPORTER “Butterfly” was commissioned for the 100th anniversary of the Estonia Theatre and Concert House. PASSION FOR SERVICE EXCELLENCE Programme of the festival, 6-20 September: www.estonia100.ee SUMMER 2013 I LIFE IN ESTONIA 7
  7. 7. I NEWS Estonian VKG picks diesel plant builder The Estonian privately owned oil shale chemicals firm Viru Keemia Grupp (VKG) has selected an Italian-Spanish consortium, including the companies KT – Kinetics Technology and OHL Industrial, as its diesel fuel plant builders. The company did not disclose the details of the turnkey project, but said that all four bidders, including Samsung from South Korea, Tecnicas Reunidas from Spain and Technip Italy from Italy, were very strong. “Especially the Koreans worked very hard to get the project. However, their price was also the highest,” said Jaanus Purga, R&D Manager and a board member of VKG. He said that the company won’t reveal the price of the construction procurement but the whole refinery complex, together with the production of hydrogen from natural gas, will cost around 400 million euros. The plant can process around 750,000 tonnes of shale oil a year, of which less than half will be diesel fuel, half lowsulphur-content ship fuel and seven to eight per cent stabilized petrol.   Purga said that the company won’t rush the investment decision, since surprising aspects have emerged recently. He mentioned the unexpected decision of stateowned Eesti Energia to give up building its own shale oil refinery and launch talks with local shale oil producers to build a joint diesel fuel plant. Jaanus Purga NOW! Innovations In March 2013, NOW! Innovations, Estonian-born tech company that provides of mobile payment and billing solutions globally, announced strategic partnership with BMW i Mobility Services. NOW! Innovations has signed an agreement with BMW i Mobility Services, which will see its billing and payment platform underpin the mobility services offered by the BMW Group and its partner companies. The capabilities of NOW! Innovations will allow BMW to extend the scope of its own ParkNow service beyond parking garages to include on-street parking as well. Joachim Hauser, director of BMW i Mobility Services, comments: “NOW! Innovations is a perfect match for us. The current scope of our ParkNow service is off-street parking. With the on-street capabilities of NOW! Innovations we will soon be able to strategically enhance our product offer and be even more attractive for our customers. The integration of onstreet parking is a major step in creating a one-stop parking experience.” Üllar Jaaksoo, NOW! Innovations CEO: “In the era of smartphones, applications and platforms we are fascinated by the opportunity to improve the daily lives of all motorists. Seamless parking payments and personalized services are our ultimate goal. In 8 LIFE IN ESTONIA I 2013 SUMMER partnership with such a visionary company as the BMW Group we will have a greater chance to accommodate the transition from analogue to digital parking. We are looking forward to providing a gamechanging solution for BMW Mobility Services.” The NOW! Parking Platform offers the widest selection of command channels: App, SMS, QR codes, IVR, NFC, RFID, LPR/ANPR. Its functionality includes dynamic billing mechanisms and multiple payment sources: credit/debit cards, pre-paid cards, customer accounts, direct debit order, PayPal, etc. The platform manages an unlimited number of parking zones, payment rate policies and customer classes. It has the highest functionality and the lowest cost on the market. NOW! Innovations is also the world pioneer for mobile payment solutions for Electric Vehicle charging. At the beginning of the year, as a part of the consortium led by ABB launched the first countrywide (Estonia) EV fast charging network in the world.
  8. 8. NEWS I Estonian capital among the world’s Top7 Intelligent Communities Intelligent Community Forum names the world’s Top7 Intelligent Communities, all with a track record of new jobs and innovative development. Tallinn is among the Top7. The Intelligent Community Forum (ICF), based in New York, has named the 2013 Top7 Intelligent Communities of the Year. The Top7 list includes three from North America, two from Taiwan and two from Europe, including Tallinn. “The Top7 communities of 2013 have made innovation – based on information and communications technology – the cornerstone of their economies and fostered economic growth through high-quality employment, while increasing the quality of life of their citizens,” said Lou Zacharilla, ICF co-founder. The ICF 2013 Top7 are: Tallinn, Estonia: Columbus, USA; Oulu, Finland; Stratford, Canada; Toronto, Canada; Taoyuan County, Taiwan; Taichung City, Taiwan. The latter was recently named as the Intelligent Community of the Year by ICF during its annual awards ceremony at Steiner Film Studios in Brooklyn, New York, USA. The Top7 demonstrate what can be accomplished by embracing information and communications technology to power growth, address social challenges and preserve and promote culture. In a more detailed report about Tallinn, ICF says the following: Estonia saw a major boom from 2004 to 2007, as loan capital poured in from Scandinavian countries. The country’s rise from Soviet occupation, beginning in 1991, had been miraculous, but the wave of investment was more than the market could usefully absorb. When the financial crisis came, it hit Estonia and its principal city of Tallinn very hard. Several thousand companies went bankrupt and layoffs, particularly of the low-skilled, rose into the tens of thousands. Yet beneath the froth, Tallinn has put into place the foundations of ICT-based growth and generating a strong comeback. Tallinn’s first wave of IT industry growth was driven by national government spending on an amazing range of e-Government applications. Its return to growth has a more sustainable basis in education and entrepreneurship. With 23 universities and technical schools, Tallinn has the resources for a knowledge workforce: it has focused now on expanding access and filling demand for ICT and digital content skills. From 2007 to 2011, Tallinn University of Technology doubled participation in lifelong learning programs. The city is expanding public access computer sites and training programs for the disconnected, while a public-private project called EstWin will extend 100 Mbps broadband throughout Estonia by 2015. To support local startups and attract talent from beyond Estonia’s borders, Tallinn and its educational and business partners have launched multiple incubators targeting creative services, medical and biotech, mechatronics and ICT. Europe’s first gaming accelerator opened in Tallinn this year, and its Ülemiste City industrial estate is expanding 50 per cent to house 250 companies, making it the Baltics’ biggest knowledge-based development. When the 2008 global economic crisis struck, Tallinn moved fast to launch aid packages to get residents and companies through the bad times with their skills and ambitions intact. The value of the city’s short-term response and its longterm strategy will be proven in coming years. The Intelligent Community Forum seeks to share the best practices of the world’s Intelligent Communities in adapting to the demands of what it calls “the Broadband Economy” by conducting research, hosting events, publishing books and newsletters and producing its high profile international awards program. ICF’s mission to make “place” align with prosperity has drawn the attention of global leaders and thinkers everywhere. The ICF Foundation consists of over 100 communities, cities and regions that have been globally designated as Intelligent Communities and which participate in an ongoing dialogue to strengthen local economies. For more information, go to  www.intelligentcommunity.org SUMMER 2013 I LIFE IN ESTONIA 9
  9. 9. I LAND AND PEOPLE More than half of the land of Estonia is covered by forest. Accordingly Estonians are somewhat traditional - close to nature some would say. They make bonfires, sing folk songs and go camping and fishing. In this context, it may seem surprising that in e-services Estonia is considered very advanced. Ericsson recently released a documentary reflecting the nation’s progress called “Life in a Networked Society”, which is - of course - available for free on the Internet. > Here we reflect on some of the key factors contributing to this success. Text: Dr. Carri Ginter / a partner at SORAINEN and an associate professor of EU law at the University of Tartu Faculty of Law For progress to happen, one needs clear leadership. In Estonia, this was witnessed by the government switching in 2000 to e-Cabinet – a paperless administration of public affairs. It lets ministers conduct cabinet meetings entirely without paper. E-Cabinet cut the average length of the weekly cabinet meetings from 4 to 5 hours to just 30 to 90 minutes. This success story has been the catalyst for paperless registries (a commercial registry and a land registry), an e-Tax department, e-annual reports, e-notary and so on. In 2010 Estonia started using e-Health records, a digital medical information system, which contains information on doctor’s visits, tests, hospital treatments, medications etc. This online public health system permits greater mobility for patients and provides for better availability of medical services. Use this QR code for information about the various alternatives that exist today. > A significant factor for all this to co-exist and function is to overcome the barriers of communication between different systems. For this purpose, Estonia has created the digital highway Voting in The Forest: New e-Breath for e-Democracy 10 LIFE IN ESTONIA I 2013 SUMMER
  10. 10. “X-Road” via which all systems communicate. XRoad is considered quite an innovation: such distant countries as Palestine and Azerbaijan are already using the Estonian X-Road platform. They often say that life in Estonia is, in many ways, easier than life in many other countries due to smart IT-solutions. Life in Estonia asked some foreigners who have moved to Estonia in order to do business here to comment on this statement. To ensure security, we did not just upload all the information online without seeing what would happen. The system uses timestamps and keeps records of who has been accessing what. Unauthorized use is documented and sanctioned. A lot was learned from the 2007 cyber attacks. This has led to significant improvements in the system. Indeed, today the NATO Cyber Defence Centre operates in Estonia. Eprogress is at the centre of attention, with the focus on making life easier and promoting positive change. Want an example of how this e-progress reduces barriers to creativity? It literally takes no more than 15 minutes to set up a company online. Almost everything can be signed with an electronic signature, which has equal legal force as a handwritten one. Signing can be done with a digital ID card, or a “mobile ID”, which in fact is contained in your phone. So the administrative hurdles between your great idea and ultimate success are reduced to a minimum. Formalities are no longer a substantial deterrent to the materialising of good ideas. Digitalization has led to reducing costs and increasing efficiency. A goal has been set to significantly reduce the time spent on court proceedings. To reach this goal, the country is gradually switching to digital communication in courts, and a significant share of all court activity is now handled by e-mail. The ultimate goal is to create, within the next few years, a digital court file (e-file), which would in the end lead to a completely paperless process. A major stepping stone for democracy is the evoting system, where in 2007 Estonians were the first in the world to be able to vote in parliamentary elections on-line. This was later extended to municipal elections. Without question, this greatly contributed to better representation of some social groups in the working of democracy. The increased involvement of such previously under-represented groups is clear when the results of e-voting are published separately: the balance of political power would be very different according to those figures. Voting was made one giant leap easier for those who traditionally would not have had the time or energy to participate. So, as you can see, the digital leap is indeed helping Estonians to stay true to their traditions: spending time away from major centres without having to become hermits. “Online” is a part of everyday life: it is not seen as doing things differently, but as doing things the way they should be done. Stefano Grace / East Capital International Ab Estonia has, in large part due to its size, history and geographic location, managed to capitalize on new technologies that simplify how its residents live, bank, vote and even receive medical care. In countries such as the United States, where I come from, implementing new technology is more challenging, as the existing fragmented frameworks and systems in place deter such drastic new development, requiring more resources and time to implement changes.   I first visited Estonia in 1988, and lived here during the collapse of the Soviet Union, participating in the Baltic Way (the human chain linking the three Baltic States in their stand for freedom), attending the song festivals known as the Singing Revolution, witnessing the tanks roll into Tallinn, and ultimately Estonians achieving the restoration of their independence. The experiences gained during that period played an important role in my decision to return to Estonia.   I returned to Estonia initially to work at the Tallinn Stock Exchange in 2004, when Estonia joined the EU, and since 2006 I have primarily focused on private equity investments in the Baltic States, currently for East Capital, a Swedish asset manager specializing in emerging and frontier markets. Over the years, I have experienced first-hand the changes in Estonia, with the real estate boom and economic crisis, and a focus on e-solutions has remained a priority for Estonia.   Estonia’s relatively small size has enabled it to become a testing ground for implementing e-solutions that make everyday life easier and make Estonia a leading example for other countries. The ability to sign a contract digitally in a secure manner, pay for parking with a mobile phone or pick up prescription medicine with an ID card are now taken for granted in Estonia, but are not real options back in the United States. While the rest of the world is catching up in some respects, such as in mobile and e-banking (even in the United States, despite its prevalent use of paper cheques), it will take time for countries like my own to reach the level of e-solutions offered in Estonia. This provides a great opportunity for Estonia to not only be an example and pioneer in implementing such technologies, but also to be a breeding ground for further developing e-solutions and exporting them abroad. SUMMER 2013 I LIFE IN ESTONIA 11
  11. 11. I LAND AND PEOPLE In Germany I have never been interested in finding out about the state budget division. The figures are just too large. But in Estonia I follow with great interest when the state budget is approved in Parliament, as those sums are conceivable. Here I am also able to understand the issues and criticism around the state budget. In Germany, those figures remain remote to the average citizen. What is your experience with Estonian e-solutions like? Christina Jörg / Director of Schöttli Keskkonnatehnika AS When and why did you come to Estonia? In 1996, I was working for a Swiss company which started to expand to the Baltic countries. They let me choose between the three Baltic states where I wanted to work. Estonia seemed at that moment to be the safest and the most Westernized of the three. At the end of 1990s, when the economy was experiencing a downturn, the company proposed I buy the Estonian branch. I immediately took advantage of that opportunity! What is your business? Schöttli builds water processing plants, relevant technology and sewage cleaning stations. Our contractors are local water companies and the financing comes from the Cohesion Fund. We find the technology which suits the specific object and decide which technology will be used to cleanse the sewage water. What do you like about Estonia? For me Estonia is less bureaucratic and its small size is an advantage because the ways of reaching people are straightforward. I cannot imagine being able to communicate with a minister in Germany. It would be impossible. I have gone on several business trips with the Minister for Economic Affairs and Communications, and I have been able to talk to him directly. It is good to learn about the future strategies and plans of the state. 12 LIFE IN ESTONIA I 2013 SUMMER Firstly, I am a great fan of the digital signature. For example, we have a project under way in Suurupi where we are building a sewage processing plant. We are buying appliances worth 1.2 million euros and the suppliers are Germans. The difference between Estonians and Germans is the following: I commission something, an Estonian signs it with a digital signature and within 24 hours I can be sure that the project has started. With German contracting entities, it normally takes between two weeks and a month. I put in the commission, it takes time to sign it, then it’s signed, and then a bank guarantee needs to be received. This all needs to be sent by DHL. That means it takes seven days to send the contract to Germany , seven days for somebody to look through it and another seven days for it to come back to me. That really slows down the process and feels so medieval! The second thing which is unbelievable in Germany is declaring your income tax. In Germany, everyone has a special tax adviser who is like a family member. It is not possible without one. In Estonia, it is simple: I receive a pre-printed tax declaration which saves an enormous amount of time. In addition, declaring taxes is an emotional problem as nobody enjoys dealing with their taxes. It is great when somebody does it for you! Here is an example of digital prescriptions from a visit to a doctor in Germany. I complained to the doctor how easy it was in Estonia. In Germany I have to stand in a queue, then the doctor prescribes my medication and then I take it to the pharmacy. I told my doctor how great it was to live in Estonia: I call my doctor, who writes out a digital prescription and I can immediately collect it from any pharmacy. My German doctor responded that it was a question of security. But I cannot imagine being interested in whether my neighbour is prescribed flu medicine or not. Sometimes data protection is really over-emphasized in Western Europe. Zoot Nel / Gamefounders How did you end up in Estonia? In Holland, we were looking for partners to develop our gaming ideas and we came across Gamefounders in Estonia. The communication with them was very nice and felt effortless so when we got chosen for the programme, we decided to work with them on our ideas. The co-operation required that our company move over to Estonia. I hadn’t even heard of Estonia before! But when I came here I was pleasantly surprised. I felt comfortable here, much more comfortable than in Holland, really. I like the climate, the weather, the cold. It’s consistently cold, I like that it’s consistent. In Holland it’s sunny in the morning, then it rains, then it hales and then it’s sunny again. What’s it like doing business over here, compared to Holland? Well, younger people seem to be more mobile in the society. Young people find it much easier to climb up the career ladder. In Holland it’s more crystallized and hierarchical. It’s much more flexible here. That’s one thing I definitely like. I find people are very eager to achieve things and
  12. 12. to develop things. In Holland, people in the middle class don’t make as much as money as they did seven or eight years ago and many people complain about that and everything stands still. Maybe it’s the people I’m with in Estonia but everybody seems to be very optimistic and happy. I’m a little bit scared that it might be a bubble. So I hope people won’t make the same mistakes we’ve made in Holland. James Oates / Cicero Capital Estonia was a second home for me long before it became a first one Also, there’s a shortage of talent in Holland and it seems that bigger companies definitely struggle to find talent. On the other hand, you’re much more desirable as a partner or as employees. Partly it is the result of flags; as a kid I was a bit of a flag nut and was given a collection of cigarette cards of flags of the world in 1936 which my grandfather had collected. I never knew him, since he died of a smoking related disease before I was born. Among many other flags was the flag of Estonia. Then one time my family were visiting London and I saw the sini-must-valge (blue-blackand white) on a large mansion. Sure enough it was the Estonian Legation, and as I later learned, the UK did not recognise the occupation. Then when I went home I could not find Estonia on the map, and when I did the flag was wrong! So I resolved to get to the bottom of the mystery. Next time I was in London I visited the Legation and was told the terrible story of Estonia - this was in 1979. So I began to understand that the world I was born into - With “East Germany” and “Yugoslavia” was rather less permanent than I thought. So I studied the history, and political economy of Central and Eastern Europe. I got involved in “dissident” groups supporting Baltic Freedom and other groups like Charter 77 and Solidarno. Some things took time to get used to when I moved here. Like how people talk to each other. But I have a theory about that: the weather is so cold and in the distant past communications must have been quite militaristic, like “it’s minus 25, fetch the wood!”. And for me, I don’t like to take orders. I start to ask why. You can sometimes be expected to be very obedient here. I was probably destined to be an obscure Academic, but as the system broke down - far sooner and more peacefully than I expected - and Eastern European specialists were in demand. So I ended up becoming a banker and learned my new trade with JP Morgan. I then had a 15 year career in the City of London (and briefly Wall St.) working in various financial businesses investing in Central Europe. So with Flemings, for example, I invested in Hansabank in 1993-4 and with UBS helped to privatise Unibanka in Latvia. I also did a lot of work in other places, Croatia, Poland and Bulgaria for example. On the other hand, there’s no social aggression, and people are relaxed. Like, on the street, people are happy to see each other. In a big city you get tired of other people. By 2007 I could already see that London was no longer that interested in Central Europe – and that there was big crisis looming. So I resolved to relocate. Estonia was an obvious choice for me: many friends, a hard-working culture, a commitment to excellence and innovation. Estonia has a future because it is interested in the future in a way that other countries are not. The only other choice Warsaw - might have been logical, especially since I speak Polish - my Estonian is still at best hesitant - but the natural environment of Estonia, the clean air and forests suited me better. Estonia is also at a crossroads of cultures. The Nordic countries are really accessible, Russia is a bit less but still nearby and Germany and the Balkan countries are quite close. Holland, even though it’s a big export country, is very busy with itself and it’s not as open. The wifi is a big thing. Wifi is very accessible, it’s everywhere and it’s very multi-layered; in some places you have three wifis to choose from! I think my expectations of Estonia have been more than matched - the efficiency of the state delivery of services, and the clarity of the rules all underpin the successful business culture that is emerging here. Innovation and entrepreneurship are allowed to flourish and I am constantly surprised by meeting so many open minds - in politics, business, the law, in music and the arts, at almost every level Estonians excel. It is said that Estonia is a small country, but I don’t find it so, there is a quality and richness, from the Theatre No99 to Arvo Pärt to the investment culture, to the armed forces, where it is clear that Estonia punches dramatically above its weight. I now advise different investment projects in the region, and although I could wish for more frequent air connections to more places, I find our business benefits hugely from not having to waste time on a daily commute or waiting to see people: Estonians are rarely late. I work fewer hours but achieve far more than I did in London. The Estonian world of innovation is now world beating, and the efficiency of my business has been substantially enhanced by the technology that is already an everyday commonplace in the country. The tax authority is the most popular state body in Estonia, and unlike the UK I do not need an army of accountants in order to complete my tax return. Company formation and reporting is all online and again requires a fraction of the time in other jurisdictions. The system of digital signatures also eliminates so much of the routine paperwork. I have not yet caught up with everything the system can do, but I am learning! SUMMER 2013 I LIFE IN ESTONIA 13
  13. 13. I LAND AND PEOPLE A London-based classical music review website has, for the second year running, named Arvo Pärt the year’s most-performed living composer. Bachtrack.com put Pärt in 54th place overall in its “Concert and Opera League Tables 2012,” a list created from a sampling of 12,597 concerts and 4,451 opera performances. According to Bachtrack. com, the league table contains the composers who featured in the greatest number of concerts during the year: a composer gets an entry if at least one work was performed in a given concert. Beethoven, Mozart, Bach, Brahms and Schubert occupied the top spots on the list, followed by Tchaikovsky, Handel, Haydn, Debussy and Schumann. The only two other living composers who found their way into the list’s top 100 were Eric Whitacre (78th) and John Adams (89th). Culture: Arvo Pärt – the master of silence The man Estonians always point out with pride is the trump card of classical music: Arvo Pärt. The 77-year-old Pärt is the most famous and most awarded Estonian composer in the world. He is an Honorary Doctor of the University of Sydney, a member of the Swedish Royal Academy of Music, an Honorary Member of American Arts and Letters and, since 2011, a member of the Pope’s Culture Council. These are just a few of the titles he holds. The music by this living classic has been recorded nearly 100 times and every day his music is played somewhere in the world. A Brief Look at Some Famous Estonians Text: Mihkel Kärmas The quote by Ernest Hemingway from To Have and Have Not “ In every port in the world, at least two Estonians can be found” is not just a literary metaphor. Many Estonians have made it to the top in diverse fields and in faraway countries. Life in Estonia has put together its own selection. 14 LIFE IN ESTONIA I 2013 SUMMER
  14. 14. Not many people who offer standing ovations in concert halls around the world after listening to Pärt’s music are aware of the fact that in the early days of his career Pärt was more successful as a composer for Estonian animation films. While the Soviet censorship ignored his arthappenings and avant-garde works in the early 1960s, his subsequent turn to religion led to a tightening of the creative noose. Conflict with the Soviet regime led Pärt and his family to emigrate in 1980. Pärt first settled in Austria and later in Germany. He returned to Estonia in the early 2000s and today divides his time between Tallinn and Berlin. Today Pärt is also an Honorary Citizen of his childhood town of Rakvere, where a statue of Pärt has been erected, depicting him as a young lad listening to music from loudspeakers on the street. Currently work is in process to create the International Arvo Pärt Centre in Laulasmaa, near Tallinn, which will function as a research and training centre, museum and archive housing all of his manuscripts. Pärt’s music can be characterised as minimalistic and religious, with mystic motifs. His best-known works are Tabula Rasa, Spiegel im Spiegel and Für Alina. Among other things, Pärt has created his own unique compositional style, called tintinnabuli, which, for lack of a better description, recalls the sound of bells. The American composer Steve Reich says: “I love his music, and I love the fact that he is such a brave, talented man. He’s completely out of step with the zeitgeist and yet he’s enormously popular, which is so inspiring. His music fulfils a deep human need that has nothing to do with fashion.” Although modest and not a man of many words, Pärt, who was persecuted under the Soviet rule, demonstrates a social sensitivity. For example, he dedicated all the performances of his works in 2006 and 2007 to the memory of Anna Politkovskaja, the murdered Russian investigative journalist, and his symphony written in 2008 was dedicated to the imprisoned entrepreneur Mikhail Hodorkovski. Despite his age, Pärt—the father of four and grandfather of six—shows no signs of slowing down. Other famous cultural representatives Paavo Järvi A member of Pärt’s generation who also fled to the West from the Soviets and achieved global fame is the conductor Neeme Järvi, who has made over 400 recordings with the world’s top orchestras. His CV reads like an encyclopaedia of orchestras. Moreover, the maestro, who is now 76 years old, also founded a family dynasty, with his sons Paavo and Kristjan as conductors and his daughter Maarika a flute player following in his footsteps. Paavo Järvi (50) is the first member of the family to win a Grammy award. Kristjan Järvi Neeme Järvi Age Oks ja Toomas Edur Famous Estonians on world stages also include the long-time soloists of the English National Ballet Toomas Edur and Age Oks, who used the stage names Thomas Edur and Agnes Oaks. In 2003, they were named the best ballet couple of Great Britain and Toomas was named the best male dancer. After living in London for nearly 20 years, the ballet artistes, who are also a couple in their private life, returned to Estonia. Today Toomas Edur (44) works as the Artistic Director of the Estonia Ballet Group in Tallinn. In 2010, the couple received the CBE (Commander of the Order of the British Empire –ed.) from Queen Elizabeth II. In the same year, their daughter Elizabeth was born. SUMMER 2013 I LIFE IN ESTONIA 15
  15. 15. I LAND AND PEOPLE Alar Kivilo Estonians are also stars in pop culture. Director of Photography Alar Kivilo (60) is the only Estonian who is a member of the American Film Academy, which selects Oscar winners. Born in Canada, the son of war evacuees, Kivilo has worked with Bruce Willis, Keanu Reeves, Cameron Diaz and Sandra Bullock. The latter won an Oscar in 2009 for her role in the film “Blind Side”, for which Kivilo was the Director of Photography. To date, Kivilo has made nearly 20 feature films and is among the leading cameramen in Hollywood. Kalev Mark Kostabi In modern painting, waves have been created by Kalev Mark Kostabi (52), who is considered scandalous and provocative, yet his works hang in some of the most famous museums and private galleries in the world. Born in 1960 in Los Angeles and the son of Estonian immigrants, Kostabi shot into the art world like a meteorite. Many consider him to be a narcissistic weirdo who knows no limits when it comes to self-promotion. One of his performances culminated in a fight with a television show host. Yet Kostabi has appeared on most of the leading American television shows, from 60 Minutes to Oprah Winfrey. Kostabi mainly provokes arts audiences due to the fact that he lets anonymous helpers paint his works on the basis of sketches and just picks up the brush to sign the works. In this way, Kostabi Manufacturing produces 1,000 paintings a year. Now Kostabi lives mostly in Italy. In every way Ilon Wikland (83) is the opposite of Kostabi. Having fled during WWII to Sweden, Wikland became famous as the illustrator of books by the children’s author Astrid Lindgren. Wikland has brought characters such as Karlsson, the Bullerby children and other beloved Lindgren characters to life through her drawings. Ilon Wikland The hottest Estonian name in show business today is the singer and songwriter Kerli (born Kerli Kõiv), who resides in Los Angeles. In addition to high rankings in Billboard and other charts, she is the most watched Estonian artiste on Youtube (see separate story, pp 72-76). Kerli 16 LIFE IN ESTONIA I 2013 SUMMER In the commercial entertainment business, the most famous actress with Estonian blood is probably the sexy schoolgirl of “American Beauty” (1999) played by Mena Suvari (34). Born in America Mena’s father is the Estonian psychiatrist Ando Süvari.
  16. 16. Sport: An Estonian - Big in Japan The sumo wrestler Baruto, born Kaido Höövelson, is an Estonian sportsman with probably the largest number of fans in the world. The 29-year-old rikishi, who is currently residing in Tokyo, was a simple Estonian country lad from Lääne Virumaa who has risen to elite status in the Japanese national sport. He is one of the most famous sumotori, although due to an injury his recent official rating has dropped. Europeans find it difficult to get excited about sumo wrestling, but on the other side of the world those heavyweights have almost divine status. “I love sumo and my favourite sumotori is Baruto,” says Kenzo Toi, the massage therapist who operates Baruto’s fan page. He says the Estonian has a physically powerful and impressive fighting style. “I thought he would reach yokozuna one day, so I became a Baruto fan.” “The sumo world is tough. To come from somewhere else and to accept this world, its rules, traditions and food, to make the effort to reach the top – I think it is a great achievement,” says another fan, Makiko Nakamura. “I think Baruto is very different for the Japanese as he has a very European look with his blue eyes and blonde hair, but inside he is very Japanese. We sense the same kind of pride and modesty and we really do love Baruto,” affirms the journalist Kumiko Hilano.  It is easy for the burly lad who is two metres in height and weighs 190 kilos to stand out amongst the general Japanese population with their generally smaller build. Thanks to Baruto, tens of millions of Japanese people are perhaps a bit more aware of the existence of Estonia. Baruto means Baltic in Japanese. After flying to Japan in 2004, it took just two years for the Estonian to become a member of the elite division, reaching the ozeki title in 2010, which is just one step away from the highest – yokozuna status. Injuries followed and at the end of 2012, Baruto lost his ozeki status. Because the career of sumo wrestlers only lasts until about the age of 30, he only has two or three years left to reach his big goal. Baruto But when he ends his career as a sumo wrestler one day, Höövelson has clear plans for the future. “Every end marks a beginning of something new. I still see myself linked to Estonia,” says the wrestler, whose family owns a farm in the Estonian countryside. “I will become a farmer”. In addition, Kaido plans to have five children with his Russian wife Elena. Other famous athletes Margus Hunt Recently Margus Hunt (25) has risen to stardom in American football, which is also an exotic sport for Estonians. Remarkably, Hunt who comes from the small village of Karksi-Nuia in southern Estonia, started out in athletics, becoming the Junior World Champion in discus and shot put in 2006 in Beijing. In university in the USA, he decided to switch careers and started to play American football. Whilst playing for Southern Methodist University, Hunt blocked 17 kicks, including 10 field goals, which is the all-time NCAA record. This spring the 203-cm and 126-kilo defensive end was selected in the second round of the NFL draft by the Cincinnati Bengals, where his first annual salary with bonuses is approximately five million dollars. A successful career after four years may bring him a new contract worth much more. Hunt is not the first or even the most highly paid Estonian in the NFL. Michael Roos (29), born Mihkel Roos is from Taebla in western Estonia, although he has spent most of his life in the USA. Since 2005, the 201 cm tall offensive tackle has played for the Tennessee Titans. Roos, who also started out in trackand-field, extended his contract with the club for another six years in 2008 for a sum of 43 million USD. half century. With Arsenal he made it to the UEFA Masters League Final in May 2007, but he didn’t get to play that evening. Poom who has represented the Estonian National Team on 120 occasions, retired in 2009 and is now active as the coach of the goalkeepers of the National Team. The most successful current players for Estonia include the striker Henrik Ojamaa (22, Scottish Premier League, Motherwell) and the defender Ragnar Klavan (27, German Bundesliga, FC Augsburg). Rein Taaramäe Mart Poom The most famous Estonian footballer is the goalie Mart Poom (41), who spent most of his career in the English Premier League, with Derby County, Sunderland and Arsenal. In 2003, the Estonian Football Union named him the best Estonian footballer of the last Throughout the years, several top cyclists have come from Estonia. Currently one of the most successful is Rein Taaramäe (26, Cofidis). Taaramäe’s best achievements are 11th place in the Tour de France in 2011 and a stage victory at Vuelta a Espana in the same year. One of his competitors is Tanel Kangert (26, Astana), who finished 14th in the Giro d’Italia this year. Kangert’s role was to help his team leader, Vincenzo Nibali, who won the Giro. SUMMER 2013 I LIFE IN ESTONIA 17
  17. 17. I LAND AND PEOPLE Business: Financier of Hotmail and Skype Photo: Michael Soo Born in Phoenix, Arizona, and the son of Estonian war immigrants, Steve grew up in Dallas, Texas. He demonstrated a talent in technology from an early age. What he lacked in athletic ability, he made up for in speaking ability, winning national debating championships throughout his college days. Early on, he also demonstrated other characteristics which have helped to make him successful: focus, a phenomenal ability to work hard, and outstanding intelligence. “When he couldn’t come first in sports, he turned to other fields. He always wanted to win,” recalls his father Tõnu Jürvetson. “For example, we would play chess and although he didn’t know how all the pieces moved, he never liked losing. The next time we played, he knew precisely what to do.” Steve continued with the same approach in prestigious Stanford University, from which he graduated with Honours in half the normal time. Steve Jürvetson The 46-year-old Steve Jürvetson is an Estonian American millionaire, investment guru and star of Silicon Valley. His funds and strategic thinking have changed all of our lives and, if his bold visions come true, will change our lives beyond recognition in the future. As we entered the new millennium, at the height of the Internet boom, Jürvetson participated at a charity auction, with the prize being the opportunity to have breakfast with him whilst introducing your own business idea. Of the 78 bidders, the prize went to a man who paid 4,400 dollars and took a five-hour flight from New York to California in order to collect his prize. What made this prize so attractive was the fact that Jürvetson has the reputation for smelling money in the most unlikely sounding ideas. As a 28-year-old it took him just six months to become a partner in one of the most influential investment companies in Silicon Valley: Draper Fisher Jurvetson (DFJ). Jürvetson became a true media magnet and cover-boy when, in 1996, he decided to support an Indian immigrant’s idea of creating free e-mail on the Internet. The same idea had already been rejected by 21 funders. The project was called Hotmail. Less than two years later, Hotmail was sold for 400 million dollars and the idea that people once used to pay money to use e-mail seems ridiculous now. The magazine Fortune subsequently ranked Jürvetson among the top ten directors in the world and seventh in the list of under-40-year-olds who have most influenced the world in this century. From then on, people started to approach him with their business plans, even in car repair shops. 18 LIFE IN ESTONIA I 2013 SUMMER Having already made a name for himself, the next global success for the charismatic Jürvetson was Skype, partly created by Estonians, which offered free phone calls on the Internet. DFJ was one of the first investors in Skype. According to the latest data, Skype is worth over eight billion dollars and more than 600 million people use it. There are now also several competitors offering a similar service. Jürvetson claims to be looking for high-risk projects which have huge potential. “We don’t want to spend time, resources and capital on projects which won’t make a lot of money. Anyone can make money. You can also make money by putting it in your bank account and earning interest. This is not the reason that our investors invest in us. They invest in us in order to take larger risks and have the opportunity to make huge sums of money. To earn ten or a hundred times their investments. Sometimes even a thousand times.” Jürvetson hoped that Skype would be a project which would have the same kind of effect on telecom companies that a car which runs without petrol has had on the oil industry. It seems that he was at least partially right: long-distance phone calls which people pay for are becoming a thing of the past. And a car that doesn’t use petrol is not just a metaphor. One investment which Jürvetson as the Managing Director of DFJ is personally overseeing is Tesla Motors, which produces electric cars (Jürvetson naturally drives one himself). In addition, Jürvetson’s portfolio includes an investment in the private spaceship project SpaceX. In 2011, the magazine Forbes included Jürvetson in the ranking of top technology investors, the “Midas List”, and in 2012 Deloitte named the Estonian the Venture Capitalist of the Year. “When you find a company which changes the world, doing something brave and exciting and helping people economically and in terms of their quality of life, it usually makes a lot of money for investors. Especially for early investors. Therefore, we focus on companies which will change the world, and the money is added value,” sums up Jürvetson.
  18. 18. Other famous business people An Estonian industrialist living in Australia – Sir Arvi Parbo – used to run a billion-dollar business and at one point he had 80,000 employees. Having been appointed Managing Director of the mining company Western Mining in 1971, Parbo was the first immigrant with a nonEnglish-speaking background to hold such a high industrial management post in Australia, a fact which attracted a lot of media interest. Under the management of the Estonian director, the small mining company became the largest gold producer in Australia. To top it all, in 1975 they discovered a huge copper, uranium and gold deposit in the southern Australian wasteland. It is called the Olympic Dam and is estimated to be worth three trillion dollars. Three years after discovering the mega deposit, Parbo received an honour awarded to no other Estonian: knighthood from the British Monarchy. The father of three and grandfather of six is retired and lives in Melbourne. Sir Arvi Parbo Photo: Martin Lazarev Oskar Metsavaht (51), a Brazilian designer with Estonian roots created the company Osklen, which has achieved international success. In addition, he is the Honorary Consul of Estonia in Rio de Janeiro. The company has 70 outlets all over the world and is especially popular in France, Japan, the USA and Italy. He has been featured in the magazine Newsweek and, in 2011, one of the leading business magazines in the USA, Fas Company, named Metsavaht among the “100 most creative people in business”. Metsavaht’s grandfather Oskar Leonhard was an optician in Rakvere and moved to Brazil in 1925. For years his father Renato was the President of the Brazilian Union of Medical Doctors. His mother Maria is a professor of psychology with Italian roots. Piret Mürk-Dubout Oskar Metsavaht Piret Mürk-Dubout (43) is the highest positioned Estonian woman working in international business. In 2011, she became the Vice President of the Swedish corporation TeliaSonera, which has 29,000 employees and 160 million customers. She started out as a news reporter in television, and her career is even more remarkable considering she is also the mother of two small children. The founder of the magazines Wallpaper and Monocle, Jayson Tyler Brûlé (44), has an Estonian mother. Born in Canada, Brûlé started his career working for the BBC, the Guardian, Sunday Times and Vanity Fair in England. After being injured whilst working in Afghanistan, he founded the trend magazine Wallpaper in 1994. Subsequently, he wrote a regular column for influential British publications. SUMMER 2013 I LIFE IN ESTONIA 19
  19. 19. I LAND AND PEOPLE Text: Mihkel Kärmas Photos: Bulls Press Before Skype became a global hit, our most famous export was Carmen Kass. Today several Estonian beauties have followed in her footsteps and have joined the cream of the crop in the fashion world. The Three Best-Known Faces of Estonia Five hundred million people all around the world use Skype, which got its start in Tallinn. The most acclaimed living composer in the world is Arvo Pärt, who comes from Estonia. However, the best known Estonian face in the world belongs to the 34-year-old Carmen Kass, the first supermodel to come from the Baltic states. All of you reading this have most likely seen her face. In 2000, Carmen Kass won the top prize in global fashion: she was named Model of the Year in the Vogue/VH1 Fashion Awards, triumphing over her main rival at the time, the Brazilian Gisele Bündchen, another model for Victoria’s Secret. Experts said that this achievement overshadowed the only Olympic gold medal won for Estonia in Sydney that year by the decathlete Erki Nool. “The Estonian Nokia has been found!” sighed the newspapers in describing Kass’s triumph. (President Lennart Meri had urged us to look for an Estonian Nokia: a brand that would make our country as known in the world as Nokia has made Finland – ed.) At the star-packed ceremony at Madison Square Garden in New York, Carmen Kass forgot some of the thank-you speech she had prepared, but once she had collected herself she expressed gratitude to her family. Carmen’s journey to stardom had been a true rags-to-riches fairy-tale. Raised by their mother alone, Carmen, her sister and her brother grew 20 LIFE IN ESTONIA I 2013 SUMMER up in Paide, a town of 8,000 inhabitants in central Estonia. As a teenager, she could easily put arrogant boys in their place and was even listed in the local youth police registry. At the age of fourteen, the future supermodel was discovered by chance at a supermarket in Tallinn by the Italian talent-scout Paolo Moglia, who was then living in Estonia. In order to be allowed to take on her first foreign job, Carmen forged her mother’s signature. “Mum did not want to let me go, but my gutfeeling told me I had to do it.” The most adored Estonian woman in the world Her gut feeling did not let her down and the risk was worth it. At the age of eighteen, Carmen moved to Paris, where a couple of years later the focused Estonian beauty could be seen strutting her stuff on catwalks for Marc Jacobs, Calvin Klein, Ralph Lauren, Donna Karan and Dolce & Gabbana, not to mention numerous cover shoots and commercials. Her real breakthrough into the global fashion elite came as the face of Dior’s millennium perfume J’adore. A year later, at the age of twentytwo, came the prestigious modelling award by Vogue in New York. The media called Carmen Kass the most adored Estonian woman in the world, no longer just a model but a supermodel the equal of such fashion icons as Naomi, Claudia and Linda.
  20. 20. “I never took on this job in order to become famous. I am just stubborn and want to give my best in whatever I do. Then it just happened that I became the best. But it does not mean the whole world to me,” said the supermodel, who had moved to New York, during an interview in 2001. “In general terms, we can divide models into fuck me and fuck you models. For me the most interesting ones are the fuck off models – and this is the face that Carmen has,” commented a friend of Kass’s, the acclaimed Estonian fashion photographer Toomas Volkmann. Kass with her 179-centimetre height, green eyes and dark blonde hair was called the representative of the angry girls generation, for she rarely smiled in photographs. Her own explanation for this image is much more prosaic. “My smile does not look good in photos. Not smiling is a conscious choice and it has nothing to do with my personality or the way I am in my private life.” Success formula: clear head and strong will Although millions know her face, Carmen Kass herself has always remained a mystery. She visits her native land in secret and cuts off any questions about her private life. “Honestly, I just have nothing to say about it. The public is interested in me because of my work,” she says. According to her former partner, the New York club owner Richie Akiva, Carmen owes 99 per cent of her success to her rational thinking, which is rare and helps her steer clear of trouble. “She is very smart. Having grown up in this city, I have seen models overdose on heroin and lose their earned millions to drugs,” says Akiva. “She was very different than the others, and clever. She looked at modelling as a business and knew exactly what she wanted.” “Carmen has a very healthy attitude towards modelling. She will not end up like Marilyn Monroe as she does not wear rose-tinted spectacles,” confirms Volkmann. What is Carmen Kass’s own view of what makes one person a supermodel and another not? “Strong will. Beauty has something to do with it, but not much. There are many beautiful people in the world, but many give up when they experience a little failure. I myself think I have nothing to lose, regardless of what I do.” Supermodel becomes chess president Her courage to experiment is illustrated by the fact that in 2004 Carmen Kass joined the Res Publica Party, creating a furore by running for the European Parliament. The supermodel received 2,315 votes but did not make it to the European Parliament. In connection with this brief encounter with politics, she experienced an embarrassing moment. A lie in Kass’ biography was revealed: she had falsely claimed to have finished secondary education. Kass had to make a public apology. Just like many gorgeous women, Kass flirted briefly with a film career. Her first attempt was a small part in Ben Stiller’s film “Zoolander”. After drama studies in the States, in 2004 Kass got a leading part in the Estonian murder mystery “Tonight we will not sleep” (“Täna öösel me ei maga” – ed.), which did not become a blockbuster. In recent years Kass has mostly been talked about in relation to ... chess! Her father was a chess trainer and Carmen’s hobby was known for years, which is why the Estonian Chess Union asked her in 2004 to become their President. Led by the charming supermodel, Estonia applied to organise the Chess Olympic Games in 2008, but lost out to Dresden. Carmen Kass worked for seven years as the President of the Estonian Chess Union and is still active as a member of their council. SUMMER 2013 I LIFE IN ESTONIA 21
  21. 21. I LAND AND PEOPLE 22 LIFE IN ESTONIA I 2013 SUMMER
  22. 22. The next Karmen picks up the crystal shoe Experts claim that Carmen Kass was the one who opened the door for other Estonian models to the top level of the fashion business. She has encouraged and made contacts for many of her younger colleagues. Estonia was not on the global map of fashion before Carmen and nobody knew that top models could come from Estonia. Today Carmen Kass is focusing more on business and has basically ended her personal fashion career. Her most successful heir is Karmen Pedaru. The beauty, who currently spends her time mostly in Rome and New York, says that she is not an icon yet, but hopes to become one. Experts say that the 178-centimetre beauty with green eyes and light brown hair still has at least ten of her best modelling years ahead. Apart from a similar name, Pedaru’s Cinderella story has many parallels with Kass’s. The 23-year-old Pedaru comes from Kehra, an even smaller town, with just 3,000 inhabitants, which is just 50 kilometres away from Kass’s childhood home. From the age of five, Karmen was raised by her grandmother and she was also discovered by chance – in the cloakroom queue of a theatre in 2005. Pedaru also dropped out of secondary school, but sky-rocketed up the fashion charts. According to the latest data on models.com, Pedaru is sixth in the global ranking of top models. “If I were an anthropologist looking at her height, the lowness of her voice, the speed of her reactions, I would say she is the reincarnation of Carmen Kass,” says the fashion photographer Toomas Volkmann. The currently highest ranked Estonian is the front face of Michael Kors’s fashion house and Gucci; her face is used to sell Hugo Boss products and Jimmy Choo perfumes. In addition, Karmen took the “crown” away from Kate Moss to become the face of Mango. People also talk about Pedaru’s dedication and strong will (not just her looks), linking it to her sports background. Before her modelling career, she was an athlete and even a goalie of the under-19 women’s national football team. Only ten days after being discovered in the theatre, she was posing for Teen Vogue in India and, as they say, the rest is history. SUMMER 2013 I LIFE IN ESTONIA 23
  23. 23. I LAND AND PEOPLE 24 LIFE IN ESTONIA I 2013 SUMMER
  24. 24. Top models are not overpaid clothes hangers Tiiu Kuik also started out in difficult social circumstances. “My mum has sometimes told me how she had to collect empty bottles to put food on the table, but there was always a warm meal. I knew we were poor but somehow she always managed to give us real birthdays, real Christmases, everything a child could want,” recalls the 26-year-old top model from Tallinn. Tiiu was discovered as a 13-year-old in a supermarket by the same Italian scout, Paolo Moglia, and the young girl literally had to start out on the other side of the world: her first foreign job took her to Japan. “I was such a hard-working little girl. How did I dare to just leave school and go do a Gucci fashion show the next day?” “When I was little, people were always talking about and looking for the Estonian Nokia and I used to tell my mum: ‘don’t worry, I will be the Estonian Nokia and I will buy you a house.’ Of course, I am not the Estonian Nokia, but I did buy my mum a house.” In the case of all three Estonian top models, the key to success in the cruel world of modelling is courageous initiative, focus and rational thinking. That they are photogenic is secondary. Carmen, Karmen and Tiiu have shattered the stereotype that a top model is just a brainless overpaid clothes hanger. In the early years of her career, she sometimes had to work five stage shows a day. She has participated in more than 50 designer shows, she has been the favourite model of the former Gucci head designer Tom Ford, has posed for numerous Vogue covers and has worked in commercials for Valentino, Dior, Moschino and many other top brands. In contrast to Pedaru, Kuik these days does not spend much time on stage, a choice she has made deliberately. “The whole point of shows is for people who work in magazines and catalogues to notice you, so that you get work. Since I am already doing this work and people do know me, there is no need to do shows.” It is noteworthy that Tiiu became the face of Dior’s perfume J’adore after the same perfume had made Carmen Kass famous. Kuik is not too concerned about fame. “I know it probably sounds bad, but I am still doing it for the money. The work is fun, I get to travel and do what I like, but I am not doing it in order for people to shout my name on street corners,” she says, with a laugh. SUMMER 2013 I LIFE IN ESTONIA 25
  25. 25. I STATE AND SOCIETY Estonia as an Engineer’s Dream Text: Taavi Kotka / Deputy Secretary General - ICT, Ministry of Economic Affairs and Communications 26 LIFE IN ESTONIA I 2013 SUMMER
  26. 26. Estonia is known around the world as an IT country. Public e-services, e-voting, digital signatures in everyday use and a transparent tax system are only a few of the examples of what makes the innovative small state stand out in the eyes of others. After separating from the Soviet Union, Estonia had to start with a clean slate and, as history has shown, a clean slate is the best surface on which to create innovation. In building up their IT solutions, Estonians made another vital choice. Instead of depending on the ready solutions of large corporations, they decided to write the necessary software themselves. This was economically more affordable, as Estonia’s SME sector is made up of very small companies by the standards of the rest of the world and, in that environment, investments must be directed very carefully. In addition, this do-it-yourself approach provided the opportunity to keep trying out new ideas, and the strong competition within a small country allowed very good ideas to quickly become dominant. Banks competed among themselves for who could offer more innovative e-solutions to customers. This approach was soon followed by telecoms, and then by others. The Estonian state did not stand by idly and observe all this, but attempted to adopt the best practices in the development of public sector e-solutions; in addition to local inventions, other countries were carefully studied for anything interesting they might be doing. It is a little-known fact, but one of the cornerstones of the Estonian ICT infrastructure, the ID card, is a concept that was borrowed from Finland. The innovation war that raged across Estonia led to an entire generation of IT engineers who, instead of maintaining old legacy systems, took the opportunity to invent new things and, thanks to Estonians’ affinity for new technology, the engineers helped to bring about the social changes that a transition to an information society requires. Add in the success story of the Skype engineers, which opened the Estonians’ eyes to the start-up world and the possibilities of Silicon Valley, and there was fertile soil for the rise of a new type of entrepreneurship. Since 2007, Estonia’s ICT sector has been experiencing a start-up boom, where various companies have been trying to break into the global market with their solutions. As in any country, the number of failures has been higher than the number of successes, but the “innovation generation” is increasingly shaping the economic model of today’s Estonia. 2012 was a breakthrough year in this respect, when five technology start-ups entered the list of Estonia’s top 100 most valuable corporations. Young companies, none more than six years old, are continuing their rise since, unlike traditional Estonian companies, their market is not Estonia or its immediate neighbouring states, but the entire global market. Considering that an increasing number of technology companies are knocking on the doors of that same Top 100 most valuable corporation list, and a more active use of technology is also raising the competitiveness of other sectors, the Estonian state is facing the serious challenge of how to develop its innovation generation further. An interesting lesson was learned from the economic crisis of 2008-2009, when the private sector, previously the driver of new ideas, froze its investments, along with the rest of the world, and paused to see what would happen to the economy next. The state understood that the role of innovation driver had to be taken over from the private sector temporarily, and European structural funds provided the necessary capital. Public e-services were developed further, the e-healthcare sector was taken to a new level, hospitals began to share information with each other, digital prescriptions were introduced, etc. Services were also opened up to non-Estonian citizens; for example, in recent years over 1500 companies have been started in Estonia by Finns. A company can be established in Estonia over the Internet, using an ID card; this service also works with the ID cards of other states if they have a sufficient level of security. Thus Finns can use their ID cards not only to establish companies here, but to file their taxes, etc. Constantly thinking up something new and trying it out is inspirational and motivational for any engineer, but innovation always has a dark side: legacy. Everything that is new and exciting today will be out of fashion and abandoned tomorrow. Software created to support a production process is a large investment, and it is very difficult to justify to a company’s owners why that software needs to be updated after six or seven years. The situation is even more difficult in the public sector, where citizens are used to constant technological development in their everyday lives, and expect the same from the state. An example of this is the rise of smartphones and the Internet. New usage patterns emerge, and the convenience of a touch-screen is expected to be applied to all services. Estonians have been helped once again in this regard by our Nordic neighbours, who have taught us that legacy maintenance is very expensive, and a small country like Estonia must choose a different path. Technology changes extremely rapidly, and consumer usage patterns along with it; there is also the constant need for progressive legislation. All this means that ICT development must be built up on the principles of continuous re-engineering. ICT must be seen not as building a house, but as building a road. Like a road, ICT requires constant maintenance and, after a certain time, it needs to be dug up and rebuilt again. Re-engineering and rebuilding lead to the development of a new innovation generation that will continue to surprise the world with its ideas, and will keep the flag of Estonia’s reputation as an IT country flying high. SUMMER 2013 I LIFE IN ESTONIA 27
  27. 27. I STATE AND SOCIETY The Story of e-Health Estonia Text: Ain Aaviksoo / MD MPH, HealthIN A recent study by OECD/EU reports that both family doctors and hospitals in Estonia are ranked third in Europe in terms of the deployment of eHealth solutions. This puts Estonia in a strong position in the most advanced and very competitive Nordic region’s e-health landscape – only the Danes are in higher positions on both healthcare aspects. 28 LIFE IN ESTONIA I 2013 SUMMER
  28. 28. What does this mean? How did it happen? First, Estonia has strong traditions of healthcare informatics and computer engineering. In 1960 the Institute of Cybernetics of the Academy of Sciences was established, and in 1973 the Estonian Ministry of Health established the Healthcare Computation Centre. Both required detailed justifications and long-term negotiations to receive permission from the Soviet government in Moscow to become established and then to purchase “military-grade” mainframe computers to become scientific leaders in the field and collaborate with top level scientists abroad. Several of the enthusiastic founding experts in healthcare informatics and statistics from these institutions are still active in various roles in universities, government agencies, hospitals and IT companies. The fact that the restoration of Estonian independence in 1991 occurred at roughly the same time as the birth of the global world wide web influenced the citizens of the country to enthusiastically embrace new technological advancements, because they felt they were a natural part of their new and better life. Perhaps this is one of the reasons why one of the largest hospitals granted its patients full access to their medical records in 2007 without any serious protests or complaints. If the solution had not worked, both doctors and patients would have been very dissatisfied, because many of them felt (and still feel) that wellinformed patients are much better prepared for cooperative treatment relationships. Another example of the agility of the medical and general society in accepting new digital solutions is the ultra-fast spread of digital prescription in 2010. In Estonia it took just nine months to get from paper-only to 85% of digital prescriptions nationwide, a level that in other countries has taken at least three years to reach. Today 95% of prescriptions are already digital in Estonia. Naturally strong IT-skills facilitated rapid computerisation of hospitals in the early 1990s, despite the very difficult economic situation. This was pushed further by Estonia’s single public payer system for health care: since 1995 the Estonian Health Insurance Fund (EHIF) has accepted and given preference to digital reimbursement claims from hospitals because of the much longer processing time of paper claims. In 2001 no more paper claims were accepted: all health care providers had to process their information electronically. Fully digital radiology was introduced by all larger hospitals in 2001 and a digital imaging archive (PACS) for sharing radiological test results across the whole country has been available since 2006. Furthermore, a scarcity of resources has forced Estonia to invent IT-solutions that satisfy the highest standards of health care while still being affordable. The integration of different data sources – health, social and community care providers, and public and private institutions – has been in place in Estonia since 2001 via a nationwide data exchange service called X-Road. It is a universal solution for the whole country and all sectors, allowing for secure information sharing and the provision of electronic services between any number of institutions and databases. Thanks to X-Road, since 2009 all Estonian health system participants – public and private hospitals, family doctors, health insurance, pharmacies and patients – have been connected to nationwide electronic health records at a very low price. The system for sharing all health information from any local information system costs about 10 dollars per citizen in Estonia. This has created a huge potential for new e-services that can reduce the fragmentation and inefficiencies of health service provision. The flexibility of the Estonian approach to e-services in Estonia is also characterized by the easy and cheap development of “bilateral digital services” for any parties desiring them. Examples of such services are real-time teleservice connection between remote islands and any hospital, clinical performance feedback by the health insurance fund to family doctors as part of their bonus payment system, an electronic referral and triage service between hospitals and family doctors, and online appointment booking. Perhaps one of the most important features is the full overview and control over health information by patients themselves: everyone can see data about themselves, and patients can also see if anyone else has accessed that information. This provides very strong prevention of the misuse of delicate health information and maintains public trust in e-services. Finland will be the first foreign country to follow the Estonian model of state-wide data integration (including the health care system), using the X-Road concept. HealthIN Ltd, which is helping organisations and regions in other countries adopt similar robust and affordable dataintegration solutions for healthcare, has found serious interest in pilot projects in Norway, Holland and the UK. The Estonian e-health ecosystem is further supported by the strong engagement of universities, private organisations and start-up accelerators, and active cooperation with Nordic and US healthcare IT hubs. The Tallinn University of Technology offers a successful international Master’s programme on Healthcare Technology, the Tallinn Science Park Tehnopol is incubating and accelerating young life-science companies from across the Nordic-Baltic Region, and the Estonian Genome Centre and researchers in the University of Tartu are doing serious research on big data analysis, which will form the basis for a nationwide personalized medicine project, to name just a few of the supporting initiatives. Typical of Estonia is the situation that, while on an everyday basis 95% of physicians use services that have proven to be difficult to make universally available in many other countries, those physicians are not completely satisfied with it and they demand better usability and advanced functionalities. The same applies to the general public, which will complain about any new e-service that is not flawless from day one or is even slightly inferior to what they’ve seen in other countries. Looking at the e-health development and strong potential of Estonia, it is clear that being digital is in Estonians’ bones. This spirit, backed up by strong traditions and well-functioning e-services, keeps everybody – policy makers, vendors, universities and other stakeholders – constantly on their toes and keeps innovation rolling. SUMMER 2013 I LIFE IN ESTONIA 29
  29. 29. I STATE AND SOCIETY Madis Tiik, MD • • • • • Tartu University, Medical Doctor 1996 Nordic School of Public Health – Diploma in Public Health 2003 Tallinn University of Technology, Institute of Clinical Medicine,  PhD 2012 Chairman of The Estonian Society of Family doctors 2001-2008 CEO of Estonian eHealth Foundation 2007- 2011 
 Current work • Vormsi island, family doctor • Tallinn University of Technology, Institute of Clinical Medicine, lecturer • Finnish Innovation fund Sitra, senior adviser, since 2012 Text: Eve Heinla Photos: Tiit MÕtTus E-Health Applications Like Something out of Science Fiction 30 LIFE IN ESTONIA I 2013 SUMMER Despite his demanding job in Finland, Madis Tiik is still a local doctor on Vormsi Island in Estonia. Sometimes he uses Skype to give consultations
  30. 30. Countries which achieve success in the field of e–health have clear-cut management structures. “I can access my health data wherever I happen to be. Patients have the same rights as doctors: they can see who has viewed their data. We Estonians already take this for granted, but for many other countries it is in the realm of science fiction!” emphasizes the e-health advocate Madis Tiik. It is tricky to arrange an interview in person with Madis Tiik (45), the former Director of the Estonian e-Health Foundation, who is currently responsible for developing the e-health system at the Finnish Innovation Fund Sitra. Every minute of his daily schedule has been organised. He would much rather organise an interview via Skype, paralleling his vision of a future health system where patients do not necessarily need to meet doctors physically in order to have consultations. The health system is also headed to the virtual world. But, still – we meet in person. What makes you most proud when you think about the Estonian e-health system? “I consider it the biggest victory that back in 2005 we had the will to cooperate, which is why we founded the Estonian e-Health Foundation, received funding from the European Union, and also successfully implemented the projects we initiated – no other country has been able to do this. Our digital solutions work, and people have got used to them,” says Tiik, adding, “of course, in addition, the e-state legislative framework, which was developed beginning in 2002, was innovative and future-oriented enough that only minor changes had to be made later. Those same principles developed back then apply not only in the health system but in the state as a whole, which is what makes this game so attractive – Estonia has been able to create this, while other countries have not.” Tiik admits that in order to realise how successful the digital story of Estonia is, one needs to visit other countries. “You go somewhere else and see the excitement with which that country views a new solution – and then you recall that it was 2002 when Estonia gave up paperwork. I sometimes forget that since 2002 checks on insurance coverage and healthcare bills have been dealt with digitally in Estonia. And elsewhere people are talking about this like it’s something entirely new....” Estonia is a leader in e-health solutions in Europe Tiik admits that, unfortunately, the Estonian ehealth success story is not widely accepted in the world because Estonia is a small country. “People think that it is logical to organise things digitally in a small country, but impossible to do it in a large country. In reality, it does not matter whether there are 1.3 million or 8 million inhabitants. I wrote my PhD thesis on the topic of what is needed to introduce an e-health system. And I know that the introduction of e-health is faster in countries with up to 10 million inhabitants, and in larger countries problems start to occur.” In fact, Estonia is the leader in Europe in e-health applications, on the basis of data from 2012. And the comparative analysis published recently by the OECD and the European Commission demonstrates that Estonia ranks first in accessibility and usage of e-health services. The other top countries in this category were Finland, Sweden and Denmark. Estonia ranks second after Denmark in the category of applying e-health services; third place is held by Sweden, fourth by Finland and fifth by Great Britain. In 2010, Estonia was still in the middle of the group of countries compared. Promoting Finnish e-healthcare Last autumn Madis Tiik was invited to promote e-healthcare in Finland and evaluate the ehealthcare services of the Finnish Innovation Fund Sitra. As the Estonian digital experience is seen as a success story in Finland, Tiik is now involved as an expert in developing the corresponding system in Finland. Tiik is able to make use of his experience as a long-term ehealth developer (he was a Board Member of the Estonian e-Health Foundation from 2007-2011) and former adviser to the President of Estonia. Tiik has been employed at the Finnish Innovation Fund as Senior Adviser since last autumn. He says that e-state components exist in Finland and they are of even better quality than in Estonia. However, as there is no single strategy or particular type of will to cooperate, as everyone wants to create their own world, they have not always been able to bring their visions to life. “I have said it over and over again: you are wealthy, you have all the solutions right here, and you do not need to reinvent the bicycle! The cooperation which exists in Estonia does not really exist in Finland. In Estonia, we wrote the first digital prescription on 1 January 2010, and implementation of 75% of the system of digital prescriptions only took three months. Estonia has become the leader in e-health in Europe, even though we only started in 2009.” But we should not rest on our laurels; we should keep making an effort in order to avoid a halt in development. SUMMER 2013 I LIFE IN ESTONIA 31
  31. 31. I STATE AND SOCIETY E-Prescription In search for efficiency, the Estonian Health Insurance Fund and the Ministry of Social Affairs started the project of e-Prescription in Estonia. After three years of development, the service was launched in 2010. The overall project lasted for five years including all the preparation necessary to issue prescriptions digitally. By the end of 2010, 84% of the prescriptions were issued digitally. The uptake of e-prescription was very fast, because it instantly delivered convenience and saved time for all parties. The central system was developed in cooperation with Helmes, one of the leading software developers and integrators in the Baltics. The new centralized and paperless system was designed to be used by all doctors, patients and pharmacies. The project involved a large number of partners from different governmental bodies and registries, hospitals and medical personnel, pharmacies and their software providers. All these organisations had different technological platforms and standards, making the implementation of the system more complex. E-Prescription has improved the openness and transparency of prescribing medicine and more importantly opened a whole new way for future developments which aim to share information and statistics, to improve the medical care and also the quality of decision making among policy makers. E-Prescription is understood as the process of electronic transfer of a prescription by a healthcare provider to a pharmacy for retrieval of the drug by the patient. Doctors prescribe medicine electronically, with the aid of an online form. The system stores incoming prescriptions and sends patients’ prescriptions on demand to a pharmacy’s information system. The e-Prescription is then immediately accessible in every pharmacy on request. The pharmacist, who is logged on to the system through the sales software or through the “X-Road” web portal, identifies a person using his/her ID card and receives the prescription from the central database. Patients have the possibility to follow the log attached to every prescription and see when and who has accessed the data. Information about the purchase is submitted to the Digital Health Record. Furthermore, the system can provide an overview of the prescriptions issued for a patient by other doctors and the actual purchasing information regarding these prescriptions. Patients no longer have to worry about carrying or losing the paper prescription. Another major advantage of the system is that patients with chronic illnesses who need a new prescription for their regular medication would only have to contact their doctor by e-mail, Skype or phone, and the doctor can issue refills with just a couple of mouse clicks. According to the survey “Citizens’ satisfaction with health and healthcare”, 97% of the digital prescriptions users are satisfied with the service. 32 LIFE IN ESTONIA I 2013 SUMMER Finns: why can’t we learn from Estonia? E-healthcare is the only solution “Finns tend to be conservative. At the same time, Sitra commissioned a study where it asked people about their readiness to use e-healthcare and this readiness was high. People often talk about why things are not moving forward in Finland, and why they can’t learn from the Estonian example.” In a few years, according to Tiik, there will be a much larger deficit in healthcare workers than today, as no European country is able to educate and train the necessary number of medical personnel. People live longer and thus the number of people suffering from chronic illnesses is also on the rise. Tiik says, with a smile, “I have been asked how to get hold of Estonian IDcards so that Finns could also use the same services. And they were serious!” “Until now there has been talk about health improving in relation to how much money is spent in medical care. But it would be more effective to direct these sums into health promotion, as what we are doing today is dealing with consequences. Developing technologies are actually helping patients to live longer by helping themselves without doctors. Doctors and nurses will just have the role of doing regular checkups, giving recommendations – and this too can be done virtually. If used right, technology can deal with about 80% of health-related issues and perhaps 20% will remain in the domain of traditional medical care in the future.” Estonians often tend to compare themselves to Latvia and Lithuania. According to Tiik, in the field of e-healthcare Lithuania ranks last and Latvia somewhere in the middle in Europe. Our starting positions were the same. Why did Estonia do so well? The answer seems to lie in good management. “Estonia established the e-Health Foundation, which was one of the biggest successes in guaranteeing that e-health initiatives would be implemented.” Tiik emphasizes that countries with clear-cut management structures have been the ones to achieve success in ehealthcare. Countries with more diluted management structures have not done as well. “I can log online wherever I am and renew a prescription in Denmark or in Holland. I can access my health data regardless of where I happen to be. Patients have the same rights as doctors: they can see who has viewed their data. We Estonians already take this for granted, but for many other countries it is in the realm of science fiction!” Although he is an optimistic visionary, Tiik emphasises that this is not utopian, and that many people believe today that the old methods will lead us to a dead-end. “The countries that are already moving in this direction and understand the problem will have an easier time in the future surviving the collapse. Promoting e-healthcare is one of the ways to make the transfer smoother and less painful.” Continues to run his general practice on Vormsi Island Despite his demanding job in Finland, Madis Tiik is still a local doctor on Vormsi Island in Estonia. He is convinced that medical advice can be given without seeing the patient. But at least once a week he sees patients in person in his practice. At other times, he uses Skype to interact with the nurse at his office, renew prescriptions and give consultations. Tiik says it would not be right for him to go to his office on Vormsi five days a week and just see five patients during that time – it would be a waste of resources. The nurse is present all the time and the island also has an emergency service. “When necessary, I talk to clients via e-mail, but “typical” patients who have chronic illnesses receive appropriate treatment from the nurse,” he explains.

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